Daily Technical Market Report for October 27, 2009 - Afternoon Newspaper
NSE India : S&P CNX Nifty - Daily Market Report for Tuesday (October 27, 2009) Nifty weakness persists… By Dominic Rebello Review of the Previous day: The Nifty fell moderately on Monday (October 26, 2009) a net 26.15 points (0.52%) and closed at 4970 point level. The market opened up then turned down, then again turned up and continued so until 01:39 p.m. when it reached its day high at 5033 points. Then it fell sharply until closing near the day low. The Nifty hovered around the psychological 5,000 level for a major part, but closed below it. Sentiment was bearish and amongst the 50 Nifty stocks, 33 were losers and 17 were gainers. Buying was witnessed in technology, pharma, select FMCG and auto stocks, while selling was witnessed in realty, telecom, banking, private power and select metal stocks. Amongst all the sectors the Realty sector was worst hit and fell by 4.60%. Technical Analysis: Volume: (Qty shares) decreased 1.71%. This change is small and indicates a moderate participation by investors. Market Breadth: Overall Market Breadth on the NSE was negative. Amongst all the traded stocks, 386 were gainers, 884 were losers and 36 remained unchanged. Slow Stochastic Indicator: The Slow Stochastic Oscillator is in the neutral zone. The Slow K line in the Stochastic Oscillator is below the slow D line (negative if it continues). RSI Indicator: The RSI is above the 40 level but is now declining (negative if it continues). MACD Indicator: The MACD is above zero but is declining (negative if it continues). It is below its 9-day Average (negative). ADX Indicator & DI Lines: The +DI line is below the –DI line and both lines are diverging (negative if it continues). The ADX is falling while the Market Index is falling, which indicates that the present down trend is decreasing in strength. Moving Averages (Trend Indicators) The index: Is below its 5-day average (at 5026) Negative. Is below its 15-day average (at 5044) Negative. Is below its 25-day average (at 5026) Negative. Is above its 200-day average (at 3901) Positive. Overall Market Strength/Weakness: The indicators and oscillators discussed here are indicating a weak market with a negative bias. Support Levels: For short-term traders the immediate main support is at 4672 marked as S1 (blue line below the Index). The next support is at 4394 marked as S2 (blue line below the Index). Resistance Levels: The immediate main resistance is at 5193 marked as R1 (red line above the Index).The next resistance is at 5580 marked as R2 (red line above the Index). Pivot Point Analysis: For intra-day traders the support and resistance levels are calculated according to the pivot point theory and are: Pivot point = 4989 (This is the level where the trend is likely to change during intra-day). Support (1) = 4944. Support (2) = 4916. Resistance (1) = 5016. Resistance (2) = 5061. ( For support and resistance levels refer to the Afternoon newspaper) Outlook for Today: On Japanese candlestick patterns the index after having formed a small white body candle with a long upper tail (indicating indecisiveness amongst market participants) has formed a small black body candle. This indicates that the bias has shifted towards the sell side of the market. Further, the 5 day’s moving average has dropped below the 15 day’s moving average. This is negative and a sell signal. Moreover, the index is below its 5, 15 and 25 day’s moving averages and the velocity parameters are also negatively trended. All these indicate a negative bias and the possibility of a further decline unfolding. Investors are advised to avoid buying at current levels. Disclaimer Information, charts or examples contained in this mail is for illustration and educational purposes only. 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